European Stocks Decline On Profit-taking

(RTTNews) - European markets were lower Monday, with French stocks turning in a particularly poor performance amid anxiety about the global economy.

Investors booked profits from last week gains on the back of the Bank of Japan's increased stimulus.

The Euro Stoxx 50 index of eurozone bluechip stocks dropped 1 percent, and is down 0.86 percent year-to-date. The German DAX lost 0.81 percent, the French CAC 40 slipped 0.92 percent and the FTSE 100 index of the U.K. fell 0.89 percent.

In Paris, Publicis Groupe lost 2.2 percent. The advertising group reported a definitive agreement to acquire US-based technology consulting company Sapient Corp. for $3.7 billion in cash.

Meanwhile, Technip gained 1 percent. The oilfield services provider received a contract from South Africa-based Sasol Limited to provide engineering and procurement for eight proprietary Ultra Selective Conversion furnaces.

HSBC fell 1.8 percent. The lender posted increased quarterly profit, but added that discussions are in progress with the UK FCA regarding a proposed resolution of their foreign exchange investigation, which is likely to involve the payment of a significant financial penalty.

Ryanair rose 7.6 percent after the Irish low-cost airline reported increased first-half profit, and lifted its full-year outlook yet again. EasyJet and International Consolidated Airlines also advanced notably.

Holcim fell 2.6 percent in Zurich. The cement maker posted third-quarter net income and revenue that missed analysts' projections.

France-based cable and telecommunications provider Altice SA, which trades on Amsterdam, announced that it has made a binding, fully financed offer to purchase the Portuguese assets of Portugal Telecom from Brazilian wireless carrier Oi S.A.

Altice was down 1.2 percent and Portugal Telecom, listed on the Euronext Lisbon Stock Exchange, added 7.3 percent.

In economic news, the eurozone's manufacturing Purchasing Managers' Index rose slightly less than initially estimated in October.

Final data from Markit Economics showed the final PMI rose to 50.6 in October from September's 14-month low of 50.3. The flash score was 50.7.

Separate data showed that Germany's manufacturing sector returned to growth zone in October. The Markit/BME PMI rose to 51.4 in October from a 15-month low of 49.9 in September. Nonetheless, the score was slightly below the flash estimate of 51.8.

The French manufacturing sector continued to contract in October but the pace of decline was slower than initially estimated. The headline seasonally adjusted PMI fell to 48.5 in October from 48.8 in September. The flash score for October was at 47.3.

U.K. manufacturing sector growth quickened more than expected in October to its fastest pace in three months. The seasonally adjusted Markit/CIPS manufacturing PMI rose to a three month high of 53.2 in October from the seventeen month low of 51.5 in September. Economists had expected the index to come in at 51.5.

Meanwhile, China's official manufacturing PMI dropped to a 5-month low of 50.8 in October, data released last Saturday showed, reinforcing concerns about a slowdown in the world's second-largest economy.

While growth in the services sector hit a nine-month low in October, a private gauge of manufacturing activity compiled by HSBC rose modestly in the month after holding steady in September.